There are so many ways I would love to title this blog post.
As I’m obsessed with the “FI life” and “how to quit like a milliionaire” book and podcast, I’m tempted to go that route. But I don’t intend on "quitting" something I love so much. Ulimtately it’s been burning in me to write about my current chapter of a photography business ownership. I turned 43 this week, and I’ve been a full time photographer in Jacksonville Florida for nearly TWENTY years now. It seems impossible to even write that, but here we are almost 20 years later, and there is so much I can look back on and write a novel…or 10. But the thing I am INCREDBILY grateful for at this current stage is the decades of INVESTING. And let me state very clearly for the record I’m not looking to give specific advice, although I’m happy to share the information that was so graciously shared with me. And I’m not looking to say this is the golden ticket way to do money management. I do however want to say that as a creative, or as any business owner, it’s mostly all you can do each day to hustle your work and do it WELL and that is your focus. Not retirement. Not wealth management. Especially early days starting out I was mostly just trying to make sure I could pay my next mortgage payment. Then it was how do I add on another lens, rent a studio, pay for employees. The day to day is what the brain is typically obsessed with, not how to retire. And lastly I’ll say I have zero desire to ever be a teacher of any sort of how to grow a photography business. This blog post is simply me as a photography business owner sharing the financial wealth that I am so grateful for at this stage in my life. The biggest take away with any investing strategy is TIME. So if you're starting out in business, start out investing as well.
A little background. I come from a business minded family. My parents and grand parents were all self employed and self made. Both my mother and father came from very poor beginnings and started their own business venture that has made them financially successful today. But because of their upbringings of childhood being so poor and going without, especially my mother would pound into us to go make as much money as possible and don’t spend it. We grew up watching my parents work very long hours, no vacations, and very little spending. They worked, they saved. And that was what we were taught. And I’m very thankful for that knowledge not only being told but watching my parents live it. Recently at lunch with my mom (which by the way I have random texts I’ll send my oldest sis that say “my fi life…” and then the thing. Years past I wouldn’t even have the time or make the time for lunch with my mom. But in my "fi life" I take time for things like lunch with mom. But I’m at lunch with my mom and were talking childhood and hustling to work work work. And I said to her how grateful I was that we were taught all our lives to work so hard, SAVE… but the additional piece that was missing was to invest. My parents didn’t know or at least they didn’t discuss with us how to invest so that was a piece I have learned through the years as I went. I just think about the amount of money I would have in a savings account today vs what I have in my retirement accounts that are making money - and the difference is drastic. It’s well over double and growing by the day. And again as a creative, and as any business owner I think our head is just down trying to make the business get off the ground, the last thing we’re thinking is to throw some money in the market. So here’s my encouragement. Put some money in the market. Little by little as you can, JUST DO IT.
But how? Luckily my oldest sis is a CPA so from the very beginning she did have me set up a simple IRA that I would max out each year. That was managed with a company (I won’t mention) then transferred to another company (I won’t mention either). At this point I’ve transferred everything to manage my own money (for free) and have control over where it’s placed. But at LEAST it was making SOMETHING. But after business got off the ground, I would end up with lump sums after busy season and not know what to do it. Remember, I don’t spend. So it’s not like I would go buy something and end up back at zero. I would put chunks down on my mortgage to pay off the house, but that was the only debt I had. I wanted to know where to put my money to MAKE money. I mentioned that to a friend at the gym one day and she had a family member who was a retired investor with fidelity. She told me she would meet up at deli comb with me, and she would help me set up a fidelity account. And from there she would show me what few mutual funds her family member would suggest to them. And that’s how it started. So that day I set up a fidelity account. You don’t need a wealth manager. You don’t need to go into an office building. You make a free account online, link your bank account. And from there I would transfer those lump sums and invest into 3 mutual funds that he suggested. I invest my lump sums into those 3 mutual funds to this day. I’m not going to give the specific mutual funds at this point although I’ll gladly and HAVE gladly told all my friends and family who want to invest on their own. I’ll give a few examples of fidelity funds I like to study. Again not advice. I love a blue chip mutual fund. I love any fund that follows the 500. I’m obsessed with tech so I’m in a tech fund with fidelity. And mutual funds are great because you’re investing in a large amount of businesses, not just one. Investing in single companies can be really great (hello nvidea), but for where I’m at and have been focused on starting and growing a business for 20 years, I was doing that and not studying the newest business to invest in. So the mutual fund invests in a large amount of companies. So that’s where my investing began and grew.
I LOVE listening to podcasts while I edit and I remember one way years ago was with Ramit. And he was talking about target funds. How you come up with what age you want to retire and there’s a fund for each year. His suggestion was vanguard so I threw a couple thousand into a target fund with vanguard. Since then I’ve sold such target fund (and by target fund I do not mean “target” as in the store although target is a great purchase of a stock currently). But I dont’ love target funds because I find them slow and less aggressive than I like. But I started listening to JL Collins talk about just investing into the entire market. VTSAX is the fund and basically it’s all the market combined. It’s a self correcting way to invest as a whole rather than a specific. While I do have some VTSAX, I love to study what people are doing and I dabble in a few different areas. Point being, there’s SO much information out there how how to invest, how to start. JL Collins being an incredible person to read about or listen in podcasts. He will say to have an emergency fund, live will below your means, invest, and let compounding interest do the rest. Or listening to the authors of quit like a millionaire who are both young and retired so early using this same method. They went to school to get great careers, they lived way below what they made. They invested, and they’re retired. I want to say they are late 30’s. I will say that I’m incredibly lucky to love what I do for my career. But I can always tell you it’s a beautiful thing ot have taken the last few months to just breathe and reset. I’ve traveled. I’ve caught up on sleep. I’ve read books. I’ve slowed down. I’ve basically been on a bit of a sabbatical. I can’t see myself ever stopping photography. I genuinely love making art for people and I find such meaning in my work. But also I have enjoyed making time for lunch with parents, going for evening walks with my husband, finally keeping an orchid alive and blooming! And I can do these things because of the financial plan that I’ve had in place the last few decades. Now I make more in the market each day than I do at a a wedding or shoot. So I work because I love it and I want to, not because I have to. And that feeling is incredibly freeing and liberating especially as a creative.
I’ll finish up with this last disclaimer of - this post was not at all intended to brag, it’s to educate. Every second shooter I work with and have asked their financial plan long term all have the same answer of they don’t know how to start. And it's been an honor to help them get set up and started. So I’m here to scream from the rooftop to just start somewhere. Set up the vanguard. Set up the fidelity. Look up some podcasts. Heck even instagram has great suggestions on funds and etf’s to invest in. Ask me, and I’m more than happy to tell you what I’ve put my money in as well as funds for both my kids. As they do chores or are given money from family, they are required to put it in the market and watch it grow. I’m grateful for the friend that got me started, and I’m happy to pay it forward to fellow photographers and business owners as well. Just know the market will always go down and back up, don't panic, just keep putting your extra in investments. Work hard, live below means, invest, repeat.
** Some of my fav funds and etf's: VTSAX like I said to have a broad investment across the entire market, VFIAX, VGT, VUG, VIGAX, semiconductor etf's, qqq. voo. Depending on your age, you can get some bonds which are cheaper right now. I like to study on funds and them pop them into my apple stock watch page and follow them. Apple will supply current news about that fund to read about. Also there's daily updates not he market you can find in podcast that are typically 10 minutes or less. Giving a really quick update on need to know.
Vanguard has a money market account right now that is earning 5.5% so even if you're hesitant about investing, keeping money in that money market account is earning you quite a bit. Also vanguard has a "cash plus account" which is earning 4.7% I believe. But it is set up with a routing number and bank account number. That way you can keep your cash in there AND have your bills being auto drafted from it rather than sitting in a checking account earning nothing. Fidelity has a similar account which I believe even gives a debit card/check option, but I don't use that and can't speak to it. (I heard it has a high minimum balance but I haven't fact checked it as I really love how user friendly vanguard is)
Bottom line. There are SO many tools to help your money grow. I'm not expert, this is not advice. The market is never guaranteed, and I make no claims. But I'm happy to share what has been a great path for me. Just remember...ups and downs WILL happen. Stay the course. Don't panic. Keep enough in your emergency fund to never have to touch your market funds on a downturn.